Download § 58-58-23

§ 58-58-23. Standard provisions for annuity and pure endowment contracts.
No annuity or pure endowment contract, except a reversionary or survivorship annuity and
except a group annuity contract, shall be delivered or issued for delivery in this State unless it
contains in substance the following provisions or provisions that in the opinion of the
Commissioner are more favorable to the holders of the contracts:
(1)
Grace period. – A provision for a grace period of not less than 31 days
within which any stipulated payment to the insurer falling due after the first
payment may be made. During the grace period, the contract shall continue
in full force. If a claim arises under the contract because of death before the
expiration of the grace period and before the overdue payment to the insurer
is made, the amount of the payments, with interest on any overdue
payments, may be deducted from any amount payable under the contract.
(2)
Incontestability. – If any statements are required as a condition of issue,
there shall be a provision that the contract shall be incontestable during the
lifetime of the person or of each of the persons as to whom the statements
are required after it has been in force for a period of two years after its date
of issue, except for nonpayment of stipulated payments to the insurer.
(3)
Misstatements of age or gender. – A provision that if the age or gender of
any person upon whose life the contract is made has been misstated, the
amount payable or benefits accruing under the contract shall be such as the
stipulated payment or payments to the insurer would have been according to
the correct age or gender; and if the insurer makes an overpayment because
of the misstatement, that amount with interest at the rate specified in the
contract may be charged against any current or subsequent payment by the
insurer under the contract.
(4)
Reinstatement. – A provision that the contract may be reinstated at any time
within one year after a default in making stipulated payments to the insurer,
unless the cash surrender value has been paid; but all overdue stipulated
payments and any indebtedness to the insurer on the contract shall be paid or
reinstated with interest at a rate specified in the contract. When applicable,
the insurer may also require evidence of insurability satisfactory to the
insurer. (1995, c. 517, s. 31(a).)
G.S. 58-58-23
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